Q2 Holdings Q1 revenue up 14% on strong bookings

Q2 Holdings

29/04/2026 21:40

Overview

US digital banking software firm's Q1 revenue rose 14% yr/yr

Adjusted EBITDA for Q1 beat analyst expectations

Company repurchased $97.2 mln of its shares during the quarter

Outlook

Q2 Holdings sees Q2 revenue between $214.0 mln and $218.0 mln

Company expects Q2 adjusted EBITDA of $57.5 mln to $60.5 mln

Q2 Holdings updates 2026 revenue outlook to $875.0 mln to $882.0 mln

Result Drivers

RECORD BOOKINGS - Co said Q1 results were supported by record first-quarter bookings, with strength in enterprise and Tier 1 contracts

DIGITAL BANKING AND FRAUD SOLUTIONS - Continued demand for digital banking platform and risk/fraud solutions drove performance, per management

AI STRATEGY MOMENTUM - Co said it advanced its AI strategy, embedding AI into banking workflows to support efficiency and fraud prevention

Company press release: ID:nBw2Q2Y9xa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$216.5 mln
Q1 Net Income
$26.64 mln
Q1 Adjusted EBITDA
Beat
$60 mln
$54.18 mln (13 Analysts)
Q1 Gross Margin
59.10%
Q1 Adjusted Gross Margin
62.10%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Q2 Holdings Inc is $75.00, about 49.5% above its April 28 closing price of $50.16

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 26 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)